A federal judge ruled that the Trump administration failed to present sufficient evidence to justify designating Anthropic as a supply chain risk, undermining the Pentagon’s ban on the company’s AI models. Anthropic had refused to allow the government to use its AI for applications involving mass surveillance or autonomous weapons systems, which prompted the ban. The company raised $65 billion in a Series H funding round in May 2026, pushing its valuation to approximately $965 billion, with Amazon, Google, and Sequoia among the backers. The judge sided with Anthropic in the lawsuit filed in March 2026, finding the government’s evidence simply was not strong enough to sustain the label.
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